There are several benefits of investing in the field of real estate. People always look for a comfortable space to live with their family or need a space for setting up a business, store their personal or precious belongings, or just set up a place for future rentals. It is one of the most credible investments one can make for the future.
Eugene Bernshtam is a USA project manager, architect, and artist. He is a fan of entrepreneurship, design, and music. He is also an expert in real estate and an avid car collector.
According to him, those who wish to invest in real estate need to know the market. They should be educated about the present trends and always place real estate at the top of their priority list. Even when there is economic turmoil, real estate costs have always been steady. If you take a look at some of the wealthiest tycoons across the globe, you will find a large number of them have successfully invested in real estate, and it is their primary source of income too.
Potential for profits
In his opinion, the potential of real estate for profit has always been high and has been identified by many people for several centuries in the past. It has a proven track record for generating profits even in history. The real estate industry has evolved to a large extent, and its profitability and principles have not changed!
The following is a scenario to illustrate how real estate is profitable- if one person owns an apartment and rents it out every month, they can use the rent collected every month to maintain the property for several months. This means the rent collected in the following months will have very low deductions. Now, if you imagine this person having five such apartments with responsible and good tenants who pay their rent every month, you can imagine the income this person generates now and in the long run too!
Real estate appreciates with time
Real estate has the potential to appreciate with time. This appreciation takes place naturally, and on average, the value increases about 3 to 5 % every year. You do not even have to do much except maintain the property. You can further the property appreciation rate by regularly carrying out repairs or renovations.
However, not every renovation will make the property value go up. It would help if you were prudent to work with a real estate agent or a licensed architect design firm to find the most valuable renovations you can make for your home.
According to Eugene Bernshtam, there are some cases where you may not get a dollar-to-dollar return. However, some property renovations pay you back as much as 80 to 90% of the money you have invested for the task. Make sure you hire the right professionals for repairs and renovations to enjoy maximum returns on your investment in the future!